Home / Nature & Environment / Climate Change / Exploring Possible Futures: Modeling in Environmental and Energy Economics / Model example and model types
Model example and model types
Frank Krysiak explains general model types and differentiations between theoretical and numerical models and gives an example of a permit market.
Economic models are useful and often necessary to answer pressing questions. But like all models they have limitations that need to be understood.
It is very important to build models in a way that they are fit for the purpose in question. In economics, we use three general types of models for different purposes:
- Explanatory models
- Simulation models
- Prediction models
In this course, we will cover the first two types of models, that is, explanatory models and simulation models.
This article is from the online course:
Exploring Possible Futures: Modeling in Environmental and Energy Economics
Created by
This article is from the free online
Exploring Possible Futures: Modeling in Environmental and Energy Economics
Reach your personal and professional goals
Unlock access to hundreds of expert online courses and degrees from top universities and educators to gain accredited qualifications and professional CV-building certificates.
Join over 18 million learners to launch, switch or build upon your career, all at your own pace, across a wide range of topic areas.
